Business 11 months ago

Dan Taylor

BitConnect shuts down exchange, lending platform

The team behind cryptocurrency company BitConnect announced they have closed down the exchange and lending platform, in the wake of early action from regulators.

Following the issuance of two cease and desist letters to the controversial exchange, BitConnect representatives gave 5 days’ notice of a pending shutdown of their exchange service, while ceasing business through their lending arm immediately.

According to posts published on the company’s website early this week, BitConnect will still support user accounts as a wallet service, following the decision to close parts of its business.

“In short, we are closing lending service and exchange service while BitConnect.co website will operate for wallet service, news and educational purposes,” according to the company.

The cease and desist letters issued by regulators in North Carolina and Texas respectively warned BitConnect the company was operating in unregistered securities, which could have paved the way for further enforcement action.

The BitConnect statement also blamed the impact of ‘bad press’ on user confidence, as well as a series of DDoS attacks against its platform, as factors in the company’s decision to wrap up its operations.

The news will be welcomed by some in the cryptocurrency community, including Vitalik Buterin, founder of ethereum, who is amongst those to have labelled BitConnect a ‘Ponzi scheme’.

Despite the setback, BitConnect maintained that a planned ICO for the company will still go ahead, albeit on a more limited prospectus.

“This is not the end of this community, but we are closing some of the services on the website platform and we will continue offering other cryptocurrency services in the future,” accoridng to the BitConnect.

The news will come as a blow to customers who had engaged with the BitConnect platform, and to those invested in its offshoot BitConnect (BCC) cryptocurrency, which peaked at over $430 earlier this month. On today’s news, BCC stands at around $5.93, down over 96%.

Note: Tokens in the SegWit chain are referred to as SegWit1X (BTC) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true  Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.
Note: Tokens on the Bitcoin Core (segwit) Chain are Referred to as BTC coins. Bitcoin Satoshi Vision (BSV) is today the only Bitcoin implementation that follows Satoshi Nakamoto’s original whitepaper for Peer to Peer Electronic Cash. Bitcoin BSV is the only major public blockchain that maintains the original vision for Bitcoin as fast, frictionless, electronic cash.

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BitConnect, 2 more ICO promoters shut down in North Dakota - BusinessTelegraph

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BitConnect, 2 more ICO promoters shut down in North Dakota | APAC Newswire

[…] shut down its exchange last January, the price of its cryptocurrency falling from a peak of over $400 a coin to a few cents today, in […]

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BitConnect, 2 more ICO promoters shut down in North Dakota – CRYPTOTIMES.MOBI

[…] shut down its exchange last January, the price of its cryptocurrency falling from a peak of over $400 a coin to a few cents today, in […]

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BitConnect, 2 more ICO promoters shut down in North Dakota | Bitcoin price media

[…] shut down its exchange last January, the price of its cryptocurrency falling from a peak of over $400 a coin to a few cents today, in […]

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Peer-to-peer cryptocurrency lending gains popularity in China – CRYPTOTIMES.MOBI

[…] indicated that there could be more than 20 startups now involved in crypto lending in the country. Xu further stated, “The [cryptocurrency] industry is called to stop, the […]

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Peer-to-peer cryptocurrency lending gains popularity in China | Bitcoin price media

[…] indicated that there could be more than 20 startups now involved in crypto lending in the country. Xu further stated, “The [cryptocurrency] industry is called to stop, the […]

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Chief of BitConnect’s Asia operations arrested at Delhi airport – Cypto.my

[…] investment in BitConnect coins. The cost of one BitConnect coin on January 16, 2018, when the company shut down, was […]

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Chief of BitConnect’s Asia operations arrested at Delhi airport – CRYPTOTIMES.MOBI

[…] investment in BitConnect coins. The cost of one BitConnect coin on January 16, 2018, when the company shut down, was […]

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Chief of BitConnect’s Asia operations arrested at Delhi airport | Bitcoin price media

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BitConnect vanishing soon from the face of crypto world | Bitcoin price media

[…] January, BitConnect shut down the exchange and lending platform in the wake of early action against regulators. Cease and desist […]

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BitConnect vanishing soon from the face of crypto world – CRYPTOTIMES.MOBI

[…] January, BitConnect shut down the exchange and lending platform in the wake of early action against regulators. Cease and desist […]

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BitConnect shuts down exchange, lending platform – Wu Wei Dao

[…] : BitConnect shuts down exchange, lending platform The team behind cryptocurrency company BitConnect announced they have closed down the […]

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